Official spot rates were held unchanged, although in the ready section most of the deals were quality-based. - File photo

KARACHI: Trading on the cotton market on Monday resumed on a firm note as prices were quoted further higher by Rs100 per maund in the ready section.

Analysts said a big cut of two per cent in the key discount rate to 12 per cent has given a tremendous boost to the buying capacity of both the mills and the spinners owing to cheaper credit lines.

However, as the textile industry appears to be operating in an orderly way without unsettling the prevailing unity to check any speculative rise in prices the market is behaving properly, they added.

Some of the fine big lots from the southern and central Punjab ginneries were traded as higher as Rs6,550 to 6,000 per maund, indicating that spinners are trying to grab the floating stock against their forward sales against export orders, floor brokers said.

They said prices seem to be heading towards the target of Rs7,000 per maund not in the very distant feature as mill demand is increasing in each session.

“The higher daily mill offtake reflects that spinners and mills are trying to keep prices within their export parity levels and that is perhaps no one among them is inclined to indulge in panic buying to boost,” they added.

Official spot rates were held unchanged, although in the ready section most of the deals were quality-based.

The following are some of the notable deals reported by the Karachi Brokers Forum on Monday:

SINDH TYPE: 2,000 and 1,000 bales, Khairpur and upper Sindh at Rs6,400, 200 bales, each Nawabshah, Sakrand, and Khadro at Rs5,600 and 5,750.

PUNJAB VARIETY: 1,200 bales, Khanewal at Rs6,400 to 6,600, 1,600 bales, Rajanpur and 400 bales, Mianwali at Rs6,450 to 6,500, 1,000 bales, 200 bales, each Sakuab Wali, Gaggon and 800 each Burewala bales, Haroonabad at Rs6,400, 200 bales, Fazalpur at Rs6,450, 200 bales, each Bakhar, Shujaabad, Liaquatpur, Rahimyar Khan, and Adda Mor, at Rs6,300, 200 bales, Chishtian at Rs6,200.